While I'd much rather focus my writing on the solutions that will get us out of the global mess we've created, it's not time yet. The painful correction predicted in The Crash Course has not happened yet. And until it does, the masses will turn a deaf ear to talk of departing from the status quo.
Too many people still believe that the authorities at the Federal Reserve and its ilk know what they're doing. Or, even worse, believe that ‘they’ have other people’s best interests at heart. It’s emotionally difficult to face the idea that the powerful people who lead us may be utterly indifferent to our fate — or even (gasp!) hostile to it.
Frankly, if the Fed-citizen dynamic were put into human relationship terms, the Fed plays the role of the abusive, unpredictable parent (or perpetrator) and the private citizen is the helpless child (or victim) desperately trying to rationalize behaviors that are really too bizarre to fit into any sensible framework.
And just like all such relationships, it's usually easier for the victim to avoid looking at it too closely because it’s just too painful to bear.
But it’s growing increasingly hard to avoid this sort of introspection because the Fed is inflicting random, painful beatings to nearly everyone — both to those alive today as well as to future generations yet unborn.
So I keep writing what I write in the hopes that I can nudge a few more people out of the abusive relationship and into something a little bit healthier for them. Then we’ll get to the solutions space.
First sometimes you need to finally grasp just how awful your parents are so you can find the courage to leave home.
Pension Woes
Among the many losers picked by the Fed (in favor of rewarding a very tiny and wealthy minority), perhaps the greatest victims are pensions.
From a high level, the structure of a pension is very simple. Take in a certain amount of capital from stakeholders, grow those funds, and over time match the total amount of available money up with the number of retired beneficiaries.
Of course, it’s not that simple because you have to make a couple of key assumptions. One is how long you expect your cohort of pensioners to live.